Investing in Opportunity Act
Millions of Americans live in economically distressed communities, and there is a growing urgency to help bridge the divide between prosperous and distressed communities in the United States. The next step is recognizing and implementing solutions to revitalize the areas that continue to be cut off from the considerable growth taking place in our country.
One of the cornerstones to creating new opportunities in local economies is expanding access to capital — one the Reinvestment Fund knows well. Over the past thirty plus years, our organization has brought together investors, government officials, and community organizations to put more than $1.8 billion into projects designed to transform communities, including housing, grocery stores, and commercial real estate. These long-term investments lay the groundwork to create thriving neighborhoods for families.
We have seen firsthand the impact of our work in job creation, spurring business growth, and personal success stories. However, we need federal action to replicate the successes we’ve seen on a scale that can effectively address the growing number of struggling local economies across the nation.
According to research by the Economic Innovation Group, more than 50 million Americans live in economically distressed communities, often exacerbated by the collapse in business startups. In the latest recovery, just 20 counties generated half of all startups in the country. In order to create new jobs and opportunities for every American, we have to start by ensuring capital exists to help would-be entrepreneurs and others build enterprise in distressed communities.
The good news is there is a bipartisan group in Congress, led by Senators Booker and Scott and Congressman Kind and Tiberi, that recently reintroduced legislation to incentivize private sector investment in distressed communities: the Investing in Opportunity Act (IIOA).
The Investing in Opportunity Act would incentivize investors to direct the estimated $2.3 trillion in unrealized capital gains into startups, small businesses, real estate, infrastructure, and more in capital-starved American communities. It also would create Opportunity Funds, enabling average investors to direct a percentage of their funds into long-term investments in distressed communities. This is a novel way to meaningfully increase critical long-term investments in the areas that need it most.
For the Reinvestment Fund, which has the expertise and experience of investing in distressed communities, this bill will bring the much needed capital that can truly harness the entrepreneurial potential in local communities. We urge Congress to pass the Investing in Opportunity Act and give American innovators and entrepreneurs the chance to make meaningful steps towards revitalizing distressed neighborhoods.
